What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2024-04-01 compared with 2023-03-29 · 58 added, 54 removed, 30 unchanged (79% of the section changed)

22 unchanged sentences

land at 33 Caddie Lane in Portland, Maine which is near our facility at 56 Evergreen Drive, on which we initiated construction of our

Drug Substance production facility for Re-Tain ®

during the third quarter of 2016.

During the fourth quarter of 2017, we obtained a Certificate of Occupancy from the City of Portland

for our 16,202 square foot (9,803 on the first floor and 6,399 on the second floor) Drug Substance production facility.

Our FDA-regulated

operations are conducted in this building.

DS production facility for Re-Tain ® during the third

quarter of 2016.

During the fourth quarter of 2017, we obtained a Certificate of Occupancy from the City of Portland for our 16,202 square

foot (9,803 on the first floor and 6,399 on the second floor) DS production facility.

Our FDA-regulated operations are conducted in this

ImmuCell Corporation

During 2017, we purchased a 4,080 square foot

facility adjacent to the Drug Substance production facility for Re-Tain ®

facility adjacent to the DS production facility for Re-Tain ®

at 14 Wedge Way in Portland, Maine.

We are using this warehouse space primarily for storage of inventory, materials and equipment.

are presently modifying this facility for packing, shipping and cold storage for Re-Tain ®

the middle of 2023, we completed modifications to this facility for packing, shipping and cold storage for Re-Tain ®

and other warehousing needs.

We expect these modifications to be complete during the middle of 2023.

Building 175:

Building 175A:

During 2019, we entered into a lease covering

approximately 14,300 square feet of office and warehouse space to expand our USDA-regulated manufacturing operations.

We have renovated

this space (a Certificate of Occupancy was issued during the second quarter of 2020) to help us expand our production capacity and improve

quality for the First Defense ® product line.

This space is being used for all of our powder milling and filling,

gel formulation and assembly services.

The original lease term was ten years with a right to renew for a second ten-year term and a right

of first offer to purchase.

During the third quarter of 2022, we entered into a new 20-year lease covering a facility that is now being

constructed by our landlord ( Building 165 , described below), which is adjacent to (and could be connected to) Building 175 .

In connection with this new lease, the lease to Building 175 was extended by approximately 13 years to match the expiration of

the other lease to Building 165 .

Building 165:

During the third quarter of 2022, we committed

to lease an additional 15,400 square feet of space at 165 Industrial Way in Portland, Maine, which could be connected to Building 175 ,

approximately 14,300 square feet of office and warehouse space at 175 Industrial Way in Portland, Maine to expand our USDA-regulated manufacturing

We have renovated this space (a Certificate of Occupancy was issued during the second quarter of 2020) to help us expand our

production capacity and improve quality for the First Defense ® product line.

This space is being used for all of

our powder milling and filling, gel formulation and assembly services.

The original lease term was ten years with a right to renew for

a second ten-year term and a right of first offer to purchase.

During the third quarter of 2022, we entered into a new 20-year lease covering

a facility that has been constructed for us by our landlord ( Building 175B , described below), which is adjacent to (and has been

connected to) Building 175A .

In connection with this new lease, the lease to Building 175A was extended by approximately

13 years to match the expiration of the other lease to Building 175B .

Building 175B:

During 2022, we committed to lease an additional

15,400 square feet of space at 175 Industrial Way in Portland, Maine, which has been constructed and connected to Building 175A ,

over a 20-year term.

The lease commencement date is when the landlord is issued a Certificate of Occupancy for the building shell, which

is anticipated to be around the beginning of the second quarter of 2023.

Lease payments begin four months after this date.

use this space for the following three purposes:

1) improve product quality by moving powder milling out of Building 56 , 2) provide

much needed additional warehouse space and 3) provide space for additional freeze-drying equipment to increase our production capacity

to approximately $40 million per year.

Due to the loss in gross margin on product sales during the first quarter of 2023 caused by the

slowdown in production output necessary to remediate a product contamination event, we have decided to defer, for the time being, completion

of the investment to build out Building 165 .

The objective to separate our powder milling operations out of Building 56

has been achieved by moving milling to Building 175 for the time being.

During the first quarter of 2017, we entered

into a renewable, two-year lease for approximately 1,350 square feet of office, warehouse and garage space in Warsaw, New York to support

our farm operations.

This lease was extended through and terminated at the end of March of 2021.

During March of 2021, we entered into

a different renewable, two-year lease for approximately 1,300 square feet of office, storage and parking space in New York.

Subsequently,

we entered into a new two-year lease to the same property through March of 2025 that includes an option to renew for an additional two-year

We are renting approximately 960 square feet in Winona, Minnesota for a sales office.

This lease automatically renews with 4% increases

for one-year terms unless we or the landlord give 60-days’ notice of a change.

The lease commencement date was April 1, 2023.

Lease payments began four months after this date.

In connection with

the lease commitment for space in Building 175B , the term of the original lease for Building 175A was extended by approximately

We intend to use this space for the following three purposes:

1) improve product quality by moving powder milling out of Building

56 , 2) provide much needed additional warehouse space and 3) provide space for additional freeze-drying equipment to increase our

production capacity to approximately $40 million per year.

Due to the loss in gross margin on product sales during 2023 caused by the

slowdown in production output necessary to remediate product contamination events, we reduced the scope of the investment to build out

Building 175B at least for the time being.

The objective of moving our powder milling operations out of Building 56 has

been achieved by moving powder milling to Building 175A for the time being.

We have completed Phase I of this build out plan, which

included pouring a concrete floor and bringing utilities and heat to the space.

Upon issuance of a Certificate of Occupancy by the city,

we plan to relocate all shipping and receiving operations from Building 56 to Building 175B and benefit from the new warehouse

When we have adequate cash, we will initiate Phase II of the build out plan, which includes construction of process rooms and installation

of production equipment necessary to further increase our production capacity.

During March of 2021, we entered into a renewable,

two-year lease for approximately 1,300 square feet of office, storage and parking space in New York.

Subsequently, we entered into a new

two-year lease to the same property through March of 2025 that includes an option to renew for an additional two-year term.

We are renting

approximately 960 square feet in Winona, Minnesota for a sales office.

This lease automatically renews with 4% increases for one-year

terms unless we or the landlord give 60-days’ notice of a change.

The current term expires in June 2024.

expect to provide notice of cancellation at this time.

We also maintain access to cows (as a source of colostrum used in the production

of the First Defense ® product line) through contractual

relationships with commercial dairy farms.

We maintain property insurance in amounts that approximate replacement cost and a modest amount

of business interruption insurance.

We do not expect to provide

notice of cancellation at this time.

We also maintain access to cows (as a source of colostrum used in the production of the First

Defense ® product line) through contractual relationships

with commercial dairy farms.

We maintain property insurance in amounts that approximate replacement cost and a modest amount of business

interruption insurance.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties